GSFC Ltd
Fertilizers
FV – Rs 2; 52wks H/L –98.7/57.65; TTQ – 4.34 Lacs; CMP – Rs 97.05  (As On October 21st 2016; 11.00);                                 

 Market Cap – Rs3857 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for Q1 FY17

*In Sept,2012 there was a stock split from Rs.10 to Rs.2 per share.

Valuation Parameters:

1. Long Term Debt to Equity – 0.02
2. ROE % – 8.1
3. Market Cap/Sales – 0.62

GSFC is India’s largest producer of the chemical Caprolactam and also has a leading position in the complex fertiliser.

Gujarat State Fertilisers and Chemicals Ltd explores setting up urea plant in Congo. (1.3 million tonne urea plant in Iran and a consortium of Indian fertiliser firms has shortlisted Iran’s Falat Group Co. to set the Rs.5,000 crore joint venture (JV) urea manufacturing plant. )

http://www.vccircle.com/infracircle/gujarat-state-fertilisers-chemicals-ltd-explores-setting-urea-plant-congo/

Urea manufacturing plants have made the record production of 411431 tonnes during FY 2015-16.

Overview:

• Established in the year 1962, Gujarat State Fertilizers and Chemicals Limited is a leading fertilisers and industrial chemical products manufacturer.
• The Company is engaged in manufacturing and marketing fertilizers, petrochemicals, chemicals, industrial gases, plastics, fibers and other products.
• GSFC operates in two segments: Fertilizer Products and Industrial Products.
• Its fertilizer products include urea, ammonium sulphate, di-ammonium phosphate, ammonium phosphate sulphate, nitrogen phosphorus and potassium (NPK) and traded fertilizer products.
• GSFC Industrial Products include caprolactam, nylon-6, nylon filament yarn, nylon chips, melamine, polymer products and traded industrial products.
• Manufacturing facilities of the Company are located at Vadodara, Surat and Jamnagar in Gujarat.

Projects Under Execution:

Projects Under consideration:

Management:

• Mr. A M Tiwari  – MD
• Mr. G R Aloria – Chairman
• Mr. V. D. Nanavaty  – CFO

The Equity Capital is @ Rs 79.7 Crs consisting of 398477530 equity Shares of FV Rs 2 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Snapshot of Prices since 2000 :

Consolidated Financial Trends (In Rs. Crs) :

Provogue (India)  Ltd
Realty
FV – Rs 1; 52wks H/L –9.99/2.90; TTQ – 65 K; CMP – Rs 5 (As On October 19th 2016; 15.00);                               

   Market Cap – Rs 116 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for Q1 FY17

• Promoter holding has decreased considerably from 41.25% in June,16 to 20.21 as on 17 August,16

 Valuation Parameters:

1. Long Term Debt to Equity – 0.2
2. ROE % – (67)
3. Market Cap/Sales – 0.22

During the previous year, the Company has received part of insurance claim amounting to Rs.10.42 Crs against loss due to a major fire occurred in February 2014 at one of the Company’s Plant located at Daman.

Cash-strapped Provogue shuts over 60 stores in 1 year

http://www.financialexpress.com/industry/companies/cash-strapped-provogue-shuts-over-60-stores-in-1-year/233048/

The company on 9^th Aug, 2016 allotted 119024732 shares of Rs.1 per share to SDR lenders at Rs.7.66 per share (Rs.91.17 Crs) which entitles them to hold 51% of post allotment paid up share capital of the company.

In October 2008 the stock split from Rs.10 to Rs.2 and further to Rs.1

1 —– 10

5 —— 2

In October it made a high of Rs.1460 of Face value Rs.10 each. Rs.1460 in 2008 of 1 share each comes to Rs.50 today for 10 shares of face value Rs.1 each.

The old Capital comprised of 14 % which has increased to 25% respectively.

The debt of Rs.305 Crs will come down to Rs. 214 Crs due to SDR issue to lenders which amounted to Rs.91 Crs.

Overview:

• Provogue (India) Ltd is engaged in the business of manufacturing, trading of garments, fashion accessories, textile products and related materials.
• The Company’s segments include Domestic and Exports.
• The Company offers shirts, t-shirts, jackets, suits and blazers, sweaters and sweatshirts, jeans, trousers and chinos, shorts, socks, sunglasses, and shoes and trainers for men, and dresses, shirts and blouses, t-shirts and knitted tops, and fragrances for women.
• The Company is a manufacturer and retailer of apparel under the brand Provogue.
• The Company retails its products through Provogue stores, shop-in-shop outlets in national chain stores, and multi brand outlets.
• The Company operates under 4 business units, namely — Fashion & Lifestyle, FMCG Personal Care, Institutional Sales and Provogue.com.
• The Company has 14 subsidiary companies including step-down subsidiaries and 2 foreign subsidiaries.

Significant valuations attached to ‘Prozone’

Having significant experience in the retail business, Provogue is also leveraging its skill set by participating in the development of the high growth, organized retail infrastructure sector through its subsidiary Prozone Enterprises Pvt Ltd. Prozone intends to tap the early mover advantage through focus on unserviced consumer base in Tier II cities.

Management:

• Mr. Nikhil Chaturvedi – MD
• Mr. Deep Gupta – CFO

Bulk Deals:

Major Non-Promoter Holdings:

Snapshot of Prices since 2005 :

Consolidated Financial Trends (In Rs. Crs) :

YOY % :

Risks:

• Too much dependency on brand ‘Provogue’: Although the company has created a very strong brand for itself, any loss in brand equity or damage will affect the business of the organization.
• Delay in planned expansion: Any delay in expansion of stores across formats could impact our estimates and would be a downside risk to our recommendation.
• Delay in project completion in Prozone: Any delay in completion of projects in reatil segment might correspondingly impact the hotel and commercial development as well as further phases of development. This may have a negative impact on the valuation of Prozone.

 Prozone Intu Properties Ltd

Realty
FV – Rs 2; 52wks H/L –38.75/23.5; TTQ – 15.86 Lacs; CMP – Rs 38 (As On October 18th 2016; 11.30);                         

         Market Cap – Rs 571.5 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for Q1 FY17

 Valuation Parameters:

1. Long Term Debt to Equity – 0.40
2. ROE % – 1.3
3. Market Cap/Sales – 6

Radhakrishna Damami has bought 19.7 lakh equity shares of the company during July –September quarter.

http://www.moneycontrol.com/news/buzzing-stocks/prozone-indu-zooms-20-after-radhakishan-damani-picksstake_7633121.html

Key Updates:

• Key Business Strategy – Develop Large scale Land Parcels for Mixed Use development with 75% of the Land to be developed as Residential & Commercial – Build & Sell model whereas 25% of the Land to be developed as Retail – Build & Lease Model.
• The Company has 17.79 mn sq. ft. of Fully Paid Upland bank in prime locations with 1.2 mn developed till date and more than 16.5 mn sq. ft. balance to be monetized which is being developed in different phases .
• Robust Balance sheet with Low Leverage at 0.35x.
• At current valuation, the Land bank valuation for the company is expected to be Rs. 20,000 mn.
• The Company owns six land banks in strategic city locations across the country comprising a total of 17.8 million square feet of developable area.

Projects in Pipeline:

1. Residential Properties in Nagpur (Prozone Palms township is being developed in 2 phases and Phase 1 of the same is spread over 11 acres of land with 2001608 sq. ft. of saleable area. Prozone Palms offers 14-storey towers with a total of 1176 flats with a wide range of luxurious 2 BHK, 3 BHK & 4 BHK apartments meticulously planned for spacious living.)
2. Indore (Prozone Palms township is being developed in 2 phases and Phase 1 of the same is spread over 11 acres of land with 2361662 sq. ft. of saleable area. Prozone Palms phase 1 offers 18-storey towers with a total of 1574 flats with a wide range of luxurious 2 BHK, 3 BHK & 4 BHK apartments meticulously planned for spacious living.)
3. Coimbatore (Retail development to have 664000 sq ft of GLA spread over 2 phases. Prozone Palms township is being developed in single phase and is spread over 11 acres of land with 1512000 sq. ft. of saleable area. Prozone Palms phase 1 offers 18-storey towers with a total of 1088 flats with a wide range of luxurious 2 BHK, 3 BHK & 4 BHK apartments meticulously planned for spacious living.)

All of these are luxurious retail townships with premium Clubhouse Infrastructure like as kids play area, meditation centre, aroma garden, therapeutic walk, multipurpose court, swimming pool, jacuzzi, barbeque pavilion, outdoor dining plaza, jogging/cycling track, amphitheatre etc.

Overview:

• Prozone Intu Properties Limited is an India-based retail and residential-led mixed-use real estate development company. The Company is engaged in the business of designing, developing, owning and operating of shopping malls, commercial and residential premises.
• It owns 15 properties, 10 of the top 25 shopping centers with a dominant market share. It is a joint venture between Provogue (India) Ltd and Capital Shopping Centres Plc.
• The Company operates in two segments: leasing and outright sales.
• Prozone Intu Properties Ltd. (Prozone Intu) is jointly developed by Provogue (India) Limited and Intu Properties Plc set up to create, develop and manage world-class regional shopping centres and associated mixed-use developments Pan-India.
• Prozone Intu strategy is to participate and dominate in the retail space in Tier 2 and 3 cities in which robust urbanization is expected, which will result in growth of consuming middle class from 300 to 500 million in next 5 years.
• Intu Properties is UK’s Largest Retail Real Estate Company.
• Intu Properties plc is a UK FTSE 100 listed Company owning and managing assets worth more than 8.9 bn pounds. They own 17 properties, 12 of which are among the top 25 shopping centers in the UK, representing ~ 38% UK market share.
• Intu Properties plc has more than 21mn sqft of retail space; 400 million customer visits a year.

The Company subsidiaries include Alliance Mall Developers Co Private Limited (AMDPL), Omni Infrastructure Private Limited (OIPL), Hagwood Commercial Developers Private Limited (HCDPL), Empire Mall Private Limited(EMPL), Royal Mall Private Limited(RMPL) , Jaipur Festival City Private Limited (JFCPL) and Kruti Multitrade Private Limited (KMPL).

Management:

• Nikhil Chaturvedi – MD
• Salil Chaturvedi– Deputy MD
• Punit Goenka – Chairman
• Anurag Garg – CFO

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

The Company does not have any Short term Borrowings. Total Debt is all Long term Debt.

Risks:
E-Commerce Players coming in according to which there is a huge threat to stores in shopping malls as people are preferring online rather than offline which is a major risk. Other risks involved are:

• Brand Risk , Business Risk and Economic Risk.
• Real estate being capital intensive industry has strong correlation with domestic and global growth and slowdown can restrain fresh demand and availability of capital.
• Delay in execution of the project can result in cost overruns which in turn impacts company’s reputation and returns.
• Delay in land acquisition due to internal factors can affect the company.
• Contractor or Sub- Contractor issues regarding commitments made earlier.
• Volatility of prices in the real estate sector. ( Most projects are sold on’ no price escalation’ basis)
• Regulations of the government and REITs. (Real Estate Investment Trusts.)

Kisan Mouldings Ltd
Plastic Products
FV – Rs 10; 52wks H/L –52/16.55; TTQ – 25; CMP – Rs 52 (As On October 17th 2016; 11:30) ;

Market Cap – Rs 111.61 Crs

Standalone Financials and Valuations for FY16 (Amt in Rs.Crs unless specified)

Standalone Financials and Valuations for Q1 FY17 (Amt in Rs Crs unless specified)

• Promoter holding has decreased considerably to 51.23 in Sept,16 from 68.96 in June,16

The company eyes Rs.1000 Crs turnover by FY 2018.

(http://www.business-standard.com/article/pti-stories/kisan-mouldings-eyes-rs-1-000-cr-turnover-by-fy18-115052001141_1.html)

On 18^th April 2016 the members have approved preferential allotment of 1381000 shares of the company.

On 21^st September 2016 the members of the Committee have approved the allotment of 7400000 Equity Shares of Rs. 10 each at a price of Rs. 40/- (inclusive of premium Rs. 30/-) on preferential basis. http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/9E8865EB_9EA6_4739_B34A_BFE63361ED19_153335.pdf

Overview:

Kisan Mouldings Limited (KML) is one of India’s largest plastics companies, processing around 50,000 metric tonnes of polymer each year. 

• Kisan Mouldings Limited is an India-based manufacturer of polyvinyl chloride (PVC) pipes, fittings and allied products.
• The Company’s segments include Pipes and Fittings, and Moulded Furniture.
• The Company’s pipes are used for water supply, sanitation, sewerage, construction, cable ducting, drinking water, tube wells, submersible pumps and various polymer products.
• The Company is also engaged in manufacturing of molded furniture.
• The Company’s pipes include rigid unplasticized polyvinyl chloride (uPVC) pipes; soil, waste and rain water (SWR) pipes, free flow uPVC plumbing pipes (American Society for Testing and Materials (ASTM)), high density polyethylene (HDPE) pipes, submersible pipes and underground drainage pipes, among others. The Company’s products include fittings, chlorinated polyvinyl chloride (CPVC) plumbing system, composite piping system, irrigation systems, Kisan barish rain water system, furniture, solvent cement, rubber lubricants, and cisterns and seat covers.

KML has decided to restructure its manufacturing footprint and is now focusing on reallocating capacities from various units to the core units in Tarapur and Tumkur. This will allow for lower order completion times and better economies of scale.

The Company has experienced a reduction of sales of about 16% in terms of Value. From a segmental point of view, Agricultural PVC Pipes have declined by over 30% in terms of Value.

Clientele:

• Shirke
• Indian Petrochemicals Ltd
• Hiranandani
• Lloyds Group
• Peninsula Land
• Raheja Corp
• Voltas
• Evershine
• HCC
• L &T
• Shapoorji Pallonji
• Tata
• Hindalco
• TCS
• Brigade Group
• Bhel
• Others

Industry Updates:

• India’s plastics industry is projected to grow dramatically in the coming years.
• There is a huge potential to grow business not only for catering to domestic demand but also for catering to global demand of plastics products and is obvious that the country will remain one of the largest sources of additional demand for almost all kinds of plastics and plastics products for major usages i.e. domestic, industrial and agriculture.
• Polymer consumption in the country has witnessed a growth in the year under review but there was tremendous volatility in the Polymer prices during the preceding year, owing to the drastic changes in crude prices.

Management:

• Mr. Vijay Aggarwal – Chairman
• Mr. Ashok Aggarwal – MD
• Mr. Suresh Purohit – CFO

Bulk Deals :

Major Non-Promoter Holdings:

Standalone Financial Trends (In Rs.Crs):